September, 2023
The Russell Investments International Shares Fund (AUD hedged) outperformed the benchmark in the September quarter. However, the Fund did deliver negative absolute returns over the period.
Stock selection in Continental Europe contributed positively to fund performance over the period; notably overweights to leading Danish pharmaceutical company Novo Nordisk A/S, Swiss bank UBS Group AG and Swiss-French human resources company Adecco Group AG. All three stocks recorded strong, double-digit gains for the quarter. Stock selection in Japan also added value, including overweights to car maker Honda Motor Co. and insurers T&D Holdings and MS&AD Insurance Group. Stock selection in Asia ex Japan added further value in the third quarter; notably an underweight to Hong Kongbased multinational insurance and finance company AIA Group, which fell more than 16% over the period. In contrast, stock selection in the US detracted from overall performance. This included underweights to chipmaker NVIDIA Corp., pharmaceutical company Eli Lilly & Co. and oil major Exxon Mobil; all of which posted very strong gains for the quarter. Other US positions to impact returns were overweights to HCA Healthcare, ratings agency Moody’s Corp. and Microsoft. Stock selection in emerging markets also weighed on returns; notably our holdings in India’s HDFC Bank, Brazilian financial services company Banco Bradesco S.A. and South Korea’s Samsung Electronics. Performance was further impacted by stock selection in the UK, albeit modestly. This included an overweight to drinks maker Diageo and an underweight to multinational aerospace and defence company Rolls-Royce.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Shares_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-5-2.pdfAugust, 2023
The Russell Investments International Shares Fund (AUD hedged) outperformed the benchmark in August. However, the Fund did deliver negative absolute returns for the month.
A material overweight to the strong-performing emerging markets space contributed positively to performance over the period. Stock selection within the sector also added value, including an overweight to Argentine e-commerce platform MercadoLibre and short positions in China’s Tencent and Taiwan Semiconductor Manufacturing Co. Stock selection in Continental Europe added further value in August; notably overweights to Swiss bank UBS and Danish multinational pharmaceutical company Novo Nordisk A/S. Both stocks made very strong gains for the month. Novo Nordisk in particular climbed almost 20%, which saw it overtake French luxury group LVMH Moët Hennessy Louis Vuitton as Europe’s most valuable company. Other notable positions to add value were underweights to Japan’s Sony Group and UK pharmaceutical firm AstraZeneca. In contrast, stock selection in the US detracted from overall performance in August, including underweights to strong-performing names like Eli Lilly & Co., chip maker NVIDIA and e-commerce platform Amazon.com. Other US positions to impact returns were overweights to Meta Platforms (formerly Facebook) and Microsoft. Stock selection in Australia also weighed on performance over the period, albeit modestly. This included overweights to Telstra and national carrier Qantas. Other key holdings to impact returns were overweights to Japanese electronics company Keyence Corp. and German car makers Bayerische Motoren Werke AG (BMW) and Mercedes-Benz Group A/G.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Shares_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-2-2.pdfJuly, 2023
The Russell Investments International Shares Fund (AUD hedged) underperformed the benchmark in July. However, the Fund did deliver positive absolute returns for the month.
Stock selection in emerging markets detracted from performance over the period; notably an ex-benchmark holding in Taiwan Semiconductor Manufacturing Co. (TSMC), which fell after management said it expected sales to decline this year amid waning demand. TSMC is the world’s largest manufacturer of computer chips. Other emerging markets positions to impact returns were ex-benchmark holdings in India’s HDFC Bank and South Korea’s Samsung Electronics. Stock selection in Japan also weighed on performance in July, albeit modestly. This included overweights to electronics company Keyence Corp. and telco KDDI Corp. Other notable positions to impact returns were an overweight to Danish transport and logistics group DSV A/S and Swedish audio streaming platform Spotify. In contrast, the Fund benefited from stock selection in the US. This included an underweight to Apple and overweights to Uber Technologies, Meta Platforms (formerly Facebook) and ratings agency MSCI, Inc. Stock selection in Continental Europe also added value in July; notably overweights to Swiss-French recruitment company The Adecco Group and Dutch bank ING Groep N.V. Stock selection in the UK added further value over the period, albeit slightly. This included overweights to Intercontinental Hotels Group and Standard Chartered. Other key holdings to contribute positively to performance were an exbenchmark exposure to Chinese shopping platform Meituan and Dutch semiconductor manufacturer ASML Holding N.V.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Shares_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-14.pdfJune, 2023
The Russell Investments International Shares Fund (AUD hedged) performed in line with the benchmark in the June quarter.
Stock selection in Continental Europe contributed positively to fund performance over the period; notably overweights to Dutch bank ING Groep N.V and German car makers Mercedes-Benz AG and Bayerische Motoren Werke AG (BMW). All three stocks recorded strong, double-digit gains for the quarter. Stock selection in emerging markets also added value, including short positions in China’s Tencent Holdings and Alibaba Group. However, this was partly offset by our broader overweight to the region, with emerging markets underperforming their developed counterparts over the period. Stock selection in Canada added further value in the second quarter; notably an overweight to multinational ecommerce platform Shopify. In contrast, stock selection in the US detracted from overall performance. This included underweights to large growth names like NVIDIA Corp., Apple and electric car maker Tesla; all of which posted very strong gains for the quarter.
Other US positions to impact returns were underweights to e-commerce giant Amazon.com, pharmaceutical company Eli Lilly & Co. and semiconductor manufacturer Broadcom. Stock selection in Japan also weighed on returns; notably overweights to electronics company Keyence Corp. and Ono Pharmaceutical. Performance was further impacted by stock selection in the UK, including an overweight to drinks maker Diageo and an underweight HSBC Holdings.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Shares_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-4-1.pdfMay, 2023
The Russell Investments International Shares Fund (AUD hedged) narrowly outperformed the benchmark in May.
Stock selection in emerging markets contributed positively to performance over the period. This included ex-benchmark holdings in technology names like Taiwan Semiconductor Manufacturing Co. and South Korea’s Samsung Electronics; both of which posted very strong gains for the month. Other emerging markets exposures to add value were short positions in China’s Tencent Holdings and Brazilian iron ore major Vale S.A.
The Fund also benefited from stock selection in Canada; notably an overweight to ecommerce platform Shopify, which climbed almost 21% in May. At the sector level, stock selection was strongest within industrials. This included an overweight to Danish transport and logistics company DSV A/S and an underweight to French construction firm VINCI SA. In contrast, stock selection in the US detracted from performance over the period; notably underweights to large cap names like NVIDIA Corp., Apple and electric car maker Tesla. All three stocks posted very strong gains for the month. Other US positions to impact returns were underweights to e-commerce giant Amazon.com and streaming platform Netflix. An overweight to Continental Europe also weighed on performance, albeit modestly. This included our holdings in Italian luxury fashion house Moncler S.p.A. and Swiss multinational food and drink company Nestlé S.A.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Shares_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-2-1.pdfApril, 2023
The Russell Investments International Shares Fund (AUD hedged) outperformed the benchmark in April.
Contributing to the Fund’s outperformance was strong stock selection in the US; notably an underweight to electric car maker Tesla, which fell almost 20% in April. Other US positions to add value were overweights to Meta Platforms (formerly Facebook), AutoZone and HCA Healthcare. The Fund also benefited from positive stock selection in Continental Europe, including overweights to Swiss pharmaceutical company Novartis, French investment bank BNP Paribas SA and Dutch bank ING Groep NV. At the sector level, stock selection was strongest within the consumer discretionary space. In addition to our positions in Tesla and AutoZone, this included a short position in China’s Alibaba Group and overweights to French luxury goods makers Hermès and LVMH Moët Hennessy Louis Vuitton.
Other notable positions to add value over the period were overweights to Italian luxury fashion house Moncler S.p.A. and Swiss food and beverage company Nestlé S.A. In contrast, stock selection in the UK detracted from overall performance in April, albeit modestly. This included underweights to AstraZeneca, HSBC Holdings and Prudential. An overweight to emerging markets also weighed on returns; though this was largely offset by positive stock selection within the space. In terms of sectors, stock selection amongst industrials impacted the most on performance; notably overweights to Uber Technologies and Danish transport and logistics company DSV A/S.
File:March, 2023
The Russell Investments International Shares Fund (AUD hedged) outperformed the benchmark in the March quarter.
Contributing to the Fund’s outperformance was a material overweight to emerging markets; notably an ex-benchmark holding in Taiwan Semiconductor Manufacturing Co. and an overweight to Argentine e-commerce company MercadoLibre. Both stocks posted strong, double-digit gains for the quarter. An overweight to Continental Europe also added value. This included overweights to Danish transport company DSV A/S and German car makers Mercedes-Benz AG and Bayerische Motoren Werke AG (BMW). Stock selection in the UK added further value over the period, including underweights to British America Tobacco and commodities giant Glencore.
Other notable positions to contribute positively to performance were an ex-benchmark holding in Swedish music streaming platform Spotify Technology SA and an overweight to Italian luxury fashion house Moncler S.p.A. In contrast, stock selection in the US detracted from overall performance. This included underweights to large growth names like Apple, NVIDIA Corp. and electric car maker Tesla, which climbed almost 71% over the period. Other US positions to impact returns were an underweight to e-commerce giant Amazon.com and an overweight to Johnson & Johnson. Stock selection in Japan also weighed on performance; notably overweights to T&D Holdings, Dai-Ichi Life and Ono Pharmaceutical Co. Other key positions to impact returns were an overweight to Switzerland’s Roche Holding AG and a short position in Dutch semiconductor company ASML Holding NV.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Shares_Fund-Class_A-English-RetIntEq-AUD.pdfFebruary, 2023
The Russell Investments International Shares Fund (AUD hedged) outperformed the benchmark in February.
Contributing to the Fund’s outperformance was an overweight exposure and strong stock selection within emerging markets; notably short positions in China’s Alibaba Group, Tencent Holdings and JD.com. All three stocks posted sharp declines for the month. Stock selection in Continental Europe also added value in February. This included overweights to Danish transport and logistics company DSV A/S and German car makers MercedesBenz Group AG and Bayerische Motoren Werke AG (BMW). At the sector level, stock selection was strongest amongst communication services. In addition to our short position in Tencent Holdings, this included an overweight to Meta Platforms (formerly Facebook) and an ex-benchmark exposure to Swedish music streaming service Spotify. In contrast, stock selection in the US detracted from overall performance. This included underweights to large growth names like Apple, NVIDIA Corp. and electric car maker Tesla; all of which posted strong gains for the month. Stock selection in Canada also weighed on returns; notably overweights to Shopify and Barrick Gold Corp. Performance was further impacted by stock selection in Asia Pacific ex Japan, albeit modestly. This included overweights to Singapore’s Grab Holdings and Hong Kong’s Link Real Estate Investment Trust. Other notable positions to impact returns were an overweight to US ratings agency Moody’s Corp. and an ex-benchmark holding in China’s Meituan.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Shares_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-1-3.pdfJanuary, 2023
The Russell Investments International Shares Fund (AUD hedged) outperformed the benchmark in January. Much of the Fund’s outperformance was driven by strong stock selection in the US, including overweights to Uber Technologies and ratings agency Moody’s Corp.; both of which posted strong, double-digit gains for the month.
Stock selection in the UK also added value over the period; notably underweights to poor-performing names like AstraZeneca and British American Tobacco. An overweight exposure to Continental Europe added further value in January, including overweights to France’s BNP Paribas, the Netherlands’ ING Groep NV and Italian banking giant UniCredit S.p.A. Other notable positions to add value were an ex-benchmark holding in Taiwan Semiconductor Manufacturing Co. and an overweight to Argentine e-commerce company MercadoLibre. In contrast, an underweight exposure to the strong-performing Chinese market detracted from overall performance. Chinese stocks have rallied strongly since Beijing decided to begin relaxing its strict COVID-zero policy. Underweight exposures to Japan and Australia also weighed on returns; the latter including underweights to leading financials such as Commonwealth Bank of Australia and Macquarie Group.
Performance was further impacted by poor stock selection within the consumer discretionary space. This included underweights to large US growth names like electric car maker Tesla and Amazon.com; though this was more or less offset by a material overweight to the sector. Other key holdings to impact returns were overweights to US names PepsiCo and Johnson & Johnson.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Shares_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-13.pdfDecember, 2022
The Russell Investments International Shares Fund (AUD hedged) outperformed the benchmark in the December quarter. Contributing to the Fund’s outperformance was strong stock selection in the US, including underweights to large growth names like electric car maker Tesla, Apple and ecommerce giant Amazon.com. All three stocks posted sharp, double-digit declines for the quarter. Stock selection in Continental Europe also added value over the period; notably overweights to Dutch bank ING Groep NV, Danish transport company DSV A/S and German car maker Mercedes-Benz AG. At the sector level, stock selection was strongest within the consumer discretionary space.
In addition to our positions in Tesla, Amazon.com and Mercedes-Benz AG, this included overweights to Italian luxury fashion house Moncler S.p.A. and US names AutoZone and Nike. Other notable positions to add value were overweights to French bank BNP Paribas and Japan’s Sumitomo Mitsui Financial Group. In contrast, a material overweight to emerging markets, which underperformed their developed counterparts over the period, detracted from overall returns. This included short positions in Taiwan Semiconductor Manufacturing Co., China’s Tencent Holdings and Brazilian iron ore major Vale S.A. Stock selection in the UK also weighed on performance, albeit modestly. This included underweights to AstraZeneca, HSBC Holdings and miner Glencore. Other key holdings to impact returns over the period were overweights to US names Uber Technologies and Meta Platforms (formerly Facebook).
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Shares_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-12.pdfNovember, 2022
The Russell Investments International Shares Fund (AUD hedged) outperformed the benchmark in November.
Much of the Fund’s outperformance was driven by strong stock selection in the US, including underweights to poor-performing growth names such as Apple, electric car maker Tesla and e-commerce giant Amazon.com. All three stocks posted sharp declines for the month. The Fund also benefited from stock selection in Continental Europe; notably overweights to the Netherlands’ ING Groep NV and German car maker MercedesBenz Group AG. Stock selection in Japan added further value in November, including overweights to strong-performing names like Sumitomo Mitsui Financial Group and Resona Holdings. Other notable positions to add value were overweights to US ratings agency Moody’s Corp. and Germany’s Daimler Truck Holding AG. In contrast, stock selection in Asia Pacific ex Japan detracted from overall performance, including an underweight to Hong Kong’s AIA Group, which jumped almost 30% for the month. Stock selection in emerging markets also weighed on returns, albeit modestly. This included short positions in Taiwan Semiconductor Manufacturing Co. and China’s Tencent Holdings. Other key positions to impact performance were underweights to NVIDIA Corp.
(US) and the Netherlands’ ASML Holding NV. Meanwhile, the Fund’s active positioning strategy was flat in November. The strategy is currently positioned in favour of value and quality to complement our strategic factor positioning.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Shares_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-11.pdfOctober, 2022
The Russell Investments International Shares Fund (AUD hedged) outperformed the benchmark in October. Contributing to the Fund’s outperformance was strong stock selection in the US, including underweights to poor-performing growth names such as Tesla and Amazon.com. The Fund also benefited from stock selection in emerging markets; notably short positions in Taiwan Semiconductor Manufacturing Co. and China’s Tencent Holdings. Stock selection in the UK and Continental Europe added further value in October; the latter including overweights to German car makers Mercedes-Benz AG and Bayerische Motoren Werke AG; both of which posted very strong gains for the month. Other notable positions to add value were overweights to Canada’s Shopify and Danish transport and logistics company DSV A/S. Meanwhile, the Fund’s active positioning strategy outperformed in October.
The strategy is currently positioned in favour of value and quality to complement our strategic factor positioning. Both value and quality outperformed growth over the period. In contrast, stock selection in Australia detracted from overall performance, including overweights to miners BHP Group and South32. An overweight exposure and stock selection in Japan also weighed on returns, albeit modestly. This included an underweight to Softbank Group and an overweight to Sumitomo Mitsui Financial Group. Other key holdings to impact performance were underweights to US oil majors Exxon Mobil and Chevron.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Shares_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-10.pdfSeptember, 2022
The Russell Investments International Shares Fund (AUD hedged) outperformed the benchmark in the September quarter. However, the Fund did deliver negative absolute returns for the period. Contributing to the Fund’s outperformance was strong stock selection in emerging markets, including ex-benchmark holdings in South Korean e-commerce company Coupang and Argentina’s US-listed MercadoLibre. A short position in China’s Tencent Holding also added value; the stock falling almost 30% for the quarter. Our broader underweight to the poor-performing Chinese market added further value over the period.
The Fund also benefited from positive stock selection in Continental Europe; notably an underweight to French pharmaceutical giant Sanofi S.A. Other key holdings to add value over the period were overweights to US names Uber Technologies, Biogen and HCA Healthcare. In contrast, poor stock selection in the US detracted from overall returns, including underweights to strong-performing growth names like Apple, electric car maker Tesla and Amazon.com. At the sector level, stock selection was weakest within the information technology space.
In addition to our holding in Apple, this included exbenchmark exposures to Taiwan Semiconductor Manufacturing Co. and South Korea’s Samsung Electronics. Other notable positions to impact performance over the period were overweights to US names ServiceNow, Meta Platforms (formerly Facebook) and Adobe. There were no material changes to either the Fund’s structure or manager line up during the quarter.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Shares_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-4.pdfAugust, 2022
The Russell Investments International Shares Fund (AUD hedged) outperformed the benchmark in August. However, the Fund did deliver negative absolute returns for the month. Contributing to the Fund’s outperformance was positive stock selection in Continental Europe. This included an overweight to Israel’s Bank Leumi and an ex-benchmark holding in Bank of Ireland; both of which recorded very strong gains for the month. The Fund also benefited from a material overweight to emerging markets, which outperformed their developed counterparts in August. Stock selection in the US added further value over the period; notably an overweight to Uber Technologies and an underweight to chipmaker NVIDIA, which fell sharply after management issued a profit warning. Other notable positions to add value were ex-benchmark holdings in India’s HDFC Bank and ICICI Bank. Meanwhile, the Fund’s active positioning strategy outperformed in August.
The strategy is currently positioned in favour of value and quality to complement our strategic factor positioning. Value outperformed growth over the period, though this was partly offset by our quality bias. In contrast, poor stock selection in the UK detracted from performance, including overweights to WPP and Intertek Group. Both stocks posted sharp declines for the month. An underweight to the energy space also weighed on returns; notably underweights to US oil giants ConocoPhillips and Exxon Mobil. Other notable positions to impact performance in August were an ex-benchmark exposure to Taiwan Semiconductor Manufacturing Co. and an overweight to US ratings agency Moody’s Corp.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Shares_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-3.pdfJune, 2022
The Russell Investments International Shares Fund (AUD hedged) outperformed the benchmark in the June quarter. However, the Fund did deliver negative absolute returns for the period.
Contributing to the Fund’s outperformance was strong stock selection in Continental Europe, including overweights to Swiss-American pharmaceutical company Novartis AG, Dutch bank ING Groep NV and German car maker BMW; all of which recorded relatively strong gains for the quarter. The Fund also benefited from positive stock selection in Japan; notably overweights to Ono Pharmaceutical and car maker Subaru Corp. Stock selection in emerging markets added further value over the period; though this was largely offset by our overweight to the region. At the sector level, stock selection was strongest within the consumer discretionary space, including underweights to US names Tesla and Amazon.com. Our active positioning strategy also added value over the period. The strategy was positioned in favour of value and quality to complement our strategic factor positioning. Both value and quality outperformed in the second quarter. In contrast, stock selection in the UK detracted from returns. This included underweights to AstraZeneca, GSK and British American Tobacco.
At the sector level, stock selection was weakest within industrials, including overweights to Uber Technologies (US) and Danish transport and logistics company DSV A/S. Other notable positions to impact performance were overweights to Canada’s Shopify and Argentina’s US-listed MercadoLibre. There were no material changes to either the Fund’s structure or manager line up during the quarter.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Shares_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-9.pdfMay, 2022
The Russell Investments International Shares Fund (AUD hedged) outperformed the benchmark in May.
Contributing to the Fund’s outperformance was strong stock selection in Continental Europe. This included overweights to French bank BNP Paribas and Dutch peer ING Groep NV; both of which posted strong gains for the month. Stock selection in the US also added value over the period; notably underweights to growth names like Apple and Tesla. At the sector level, stock selection was strongest within the consumer discretionary space. In addition to our underweight to Tesla, this included overweights to German car makers BMW and Mercedes Benz. Other notable positions to add value were an overweight to Canada’s Suncor Energy and an ex-benchmark holding in Taiwan Semiconductor Manufacturing Co. Meanwhile, the Fund’s active positioning strategy outperformed in May. The strategy is currently positioned in favour of value and quality to complement our strategic factor positioning. Value continued to outperform growth over the period, though this was partly offset by our quality bias. In contrast, an overweight to emerging markets (EM) detracted from overall performance; though this was largely offset by positive stock selection within the EM space. An underweight to the strong-performing energy sector also weighed on returns, including underweights to US names Exxon Mobil, Chevron and ConocoPhillips. Other key holdings to impact performance to were overweights to Uber (US) and Swiss pharmaceutical company Roche Holding AG
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Shares_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-8-1.pdfApril, 2022
The Russell Investments Global Opportunities Fund (AUD hedged) outperformed the benchmark in April. However, the Fund did deliver negative absolute returns for the month.
Contributing to the Fund’s outperformance was positive stock selection in Continental Europe. This included overweights to German car maker Mercedes Benz, Switzerland’s Nestle SA and Dutch brewer Heineken NV; all of which posted strong gains for the month. Stock selection in Japan also added value over the period; notably a short position in Sony, which fell almost 13% in April. At the sector level, stock selection was strongest within consumer discretionary, including underweights to US growth names Amazon.com and electric car maker Tesla. Other notable positions to add value were underweights to US names NVIDIA Corp. and Netflix, and overweight to Canada’s Suncor Energy. Meanwhile, the Fund’s active positioning strategy outperformed in April. The strategy is currently positioned in favour of value and quality to complement our strategic factor positioning. Value continued to outperform growth over the period, though this was partly offset by our quality bias. In contrast, poor stock selection in emerging markets detracted from overall performance. This included ex-benchmark holdings in Taiwan Semiconductor Manufacturing Co. and Brazilian iron ore major Vale S.A. Stock selection in the US also weighed on returns; notably our overweights to Google parent, Alphabet, and Microsoft. Other key holdings to impact performance were underweights to oil giant Exxon Mobil, Apple and The Coca-Cola Company.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_Global_Opportunities_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-4-1.pdfMarch, 2022
The Russell Investments International Shares Fund (AUD hedged) narrowly outperformed the benchmark in the March quarter. However, the Fund did deliver negative absolute returns for the period.
Contributing to the Fund’s outperformance was strong stock selection in Japan, including overweights to oil and gas explorer INPEX Corp., Sumitomo Metal Mining Co. and Mitsubishi UFJ Financial Group. The Fund also benefited from positive stock selection within the healthcare space; notably overweights to US names Anthem, Inc. and Johnson & Johnson. Other key positions to add value were overweight to UK oil major Shell and underweight to US streaming service Netflix. Our active positioning strategy added further value over the period. The strategy was positioned in favor of value and quality to complement our strategic factor positioning. Whilst quality underperformed in the first quarter, this was more than offset by our value exposure. In contrast, poor stock selection in emerging markets detracted from overall returns; notably ex-benchmark holdings in Taiwan Semiconductor Manufacturing Co. and South Korean technology names Samsung Electronics and SK hynix.
At the sector level, stock selection was weakest within financials and industrials; the latter included overweights to Danish transport and logistics company DSV A/S and Germany’s Daimler Truck AG. Other notable positions to impact performance over the period were overweights to Canada’s Shopify and US names EPAM Systems and Meta Platforms. There were no material changes to either the Fund’s structure or manager line up during the quarter.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Shares_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-7-1.pdfFebruary, 2022
The Russell Investments International Shares Fund (AUD hedged) underperformed the benchmark in February.
Contributing to the Fund’s underperformance was stock selection in emerging markets; notably ex-benchmark holdings in Russian names like Gazprom, Sberbank and Lukoil. All three stocks fell sharply in the wake of Russia’s invasion of Ukraine. Given Russian shares are currently unable to be traded, any (remaining) Russian holdings in the Fund have been written down to zero, meaning the Fund effectively has no exposure to the country. Stock selection in Continental Europe also detracted from returns; notably overweights to financials with a greater exposure to Russia’s economy. This included our holdings in the Netherlands’ ING Groep NV, France’s BNP Paribas and Italy’s UniCredit S.p.A. At the sector level, stock selection within the information technology space weighed the most on performance, including an ex-benchmark holding in Taiwan Semiconductor
Manufacturing Co. and an overweight to US software engineering firm EPAM Systems. In contrast, the Fund benefited from strong stock selection in Japan; notably overweights to carmakers Isuzu Motors and Honda Motor Co. Other notable positions to add value were underweights to US names Apple, PayPal and Tesla. Meanwhile, the Fund’s active positioning strategy outperformed in February. The strategy is currently positioned in favour of value and quality to complement our strategic factor positioning. Value outperformed growth over the period, though this was partly offset by our quality bias.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Shares_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-5-1.pdfDecember, 2021
The Russell Investments International Shares Fund (AUD hedged) underperformed the benchmark in the December quarter. Contributing to the Fund’s underperformance was poor stock selection in the US; notably underweights to Apple, Tesla and NVIDIA Corp. Our long-held underweight to the US market also weighed on returns. We continue to favour non-US equities over US equities on the basis that the US market is overvalued relative to other regions. Performance was further impacted by an overweight exposure and poor stock selection in Japan, including overweights to Honda Motor and Japan Airlines. Other notable positions to impact returns were an ex-benchmark holding in India’s HDFC Bank and an overweight to German car maker Daimler AG. In contrast, the Fund benefited from positive stock selection in Asia Pacific ex Japan, including underweights to Hong Kong-listed AIA Group and Singapore’s Sea Ltd. Stock selection within emerging markets also added value – notably short positions in Chinese mega-caps Alibaba Group and Tencent Holdings – though this was largely countered by our material overweight to the region. Our active positioning strategy added further value over the period. The strategy was positioned in favour of value and quality to complement our strategic factor positioning. Whilst value underperformed growth in the fourth quarter, this was more than offset by our quality exposure. There were no material changes to either the Fund’s structure or manager line up during the quarter
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Shares_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-1-2.pdfNovember, 2021
The Russell Investments International Bond Fund (AUD hedged) narrowly outperformed the benchmark in November.
Active currency positioning contributed positively to fund performance over the period; notably short Swedish krone and Australian dollar exposures. Partly offsetting this was a long Norwegian krona position. Credit positioning was also positive in November, including underweights to US investment-grade industrials and utilities. However, our overweights to US asset-backed securities and US and European corporate high-yield debt limited any further credit gains. Meanwhile, interest rates positioning had no material impact on overall performance in November. Whilst the Fund benefited from overweights to Australia and Japan, these positions were offset by our underweights to the UK and China. In terms of strategic factor performance, our term risk premium, credit risk premium and currency factor strategies all added value over the period, while our rates factor strategies had a negligible impact on returns
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Bond_Fund_-_A_Hedged-Class_A-English-RetIntFI-AUD.pdfOctober, 2021
The Russell Investments International Shares Fund (AUD hedged) underperformed the benchmark in October. However, the Fund did deliver positive absolute returns for the month. Contributing to the Fund’s underperformance was poor stock selection in the US, including underweights to Tesla, NVIDIA Corp. and Microsoft. Compounding this was our underweight to the US market. We maintain our preference for non-US equities over US equities on the basis that the US market remains overvalued relative to other regions. Overweight exposures to emerging markets and Japan, which briefly fell into correction territory during the month, also weighed on returns. Meanwhile, the Fund’s active positioning strategy underperformed in October. The strategy is currently positioned in favour of value and quality to complement our strategic factor positioning. Value underperformed growth over the period, though this was partly offset by our quality exposure. In contrast, the Fund benefited from an underweight exposure to Asia Pacific ex Japan; notably Australia, which underperformed the broader market in October. Positive stock selection in Continental Europe also added value, including overweights to Germany’s Daimler AG and French luxury goods maker Hermès.
Moving forward, the Fund remains underweight North America, the UK and Asia Pacific ex Japan. We also maintain overweight exposures to Continental Europe, Japan and emerging markets. In terms of sectors, the Fund is most overweight financials and energy and most underweight information technology and industrials.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Shares_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-2.pdfSeptember, 2021
The Russell Investments International Shares Fund (AUD hedged) narrowly underperformed the benchmark in the September quarter. Contributing to the Fund’s underperformance was poor stock selection in the US; notably underweights to information technology names like Microsoft, NVIDIA Corp. and Apple. Stock selection within the broader technology space also weighed on returns, including an overweight to Micron Technology (US) and ex-benchmark holdings in Taiwan Semiconductor Manufacturing Co. and South Korea’s Samsung Electronics. Returns were further impacted by poor stock selection in Japan, including an overweight to Nintendo, as well as the underperformance of our active positioning strategy. The strategy was positioned in favour of value and quality to complement our strategic factor positioning. Value underperformed growth over the period, though this was partly offset by our quality exposure.
In contrast, the Fund benefited from positive stock selection within emerging markets; notably an overweight to Russia’s Gazprom and short positions in Chinese large cap growth names like Tencent Holdings and Alibaba Group. Stock selection in Continental Europe was also positive for the quarter, including overweights to the Netherlands’ ING Groep NV and Norway’s Norsk Hydro. Other notable positions to add value over the period were an underweight to US e-commerce giant Amazon.com and an overweight to Japan’s Keyence Corp. There were no material changes to either the Fund’s structure or manager line up during the quarter.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Shares_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-1.pdfJuly, 2021
The Russell Investments International Shares Fund (AUD hedged) underperformed the benchmark in July.
Contributing to the Fund’s underperformance was poor stock selection in Continental Europe, including overweights to the Netherlands’ ING Groep NV and German carmaker BMW. Stock selection in the US also detracted from returns; notably underweights to Apple and Moderna. At the sector level, stock selection was weakest within the information technology space. In addition to Apple, this included ex-benchmark holdings in Taiwan Semiconductor Manufacturing Co. and South Korea’s Samsung Electronics. Other notable positions to impact returns over the period were ex-benchmark exposures to China’s TAL Education Group and Meituan. Meanwhile, the Fund’s active positioning strategy underperformed in July. The strategy is currently positioned in favour of value and quality to complement our strategic factor positioning. Value underperformed growth over the period, though this was partly offset by our quality exposure. In contrast, the Fund benefited from positive stock selection in Hong Kong, including an underweight to AIA Group. Stock selection in Australia also added value; notably an underweight to Westpac.
Moving forward, the Fund remains underweight North America and Asia Pacific ex Japan. We also maintain overweight exposures to Continental Europe, the UK, Japan and emerging markets. In terms of sectors, the Fund is most overweight financials and energy and most underweight information technology and industrials
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Shares_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-7.pdfJune, 2021
The Russell Investments International Shares Fund (AUD hedged) underperformed the benchmark in the June quarter. Contributing to the Fund’s underperformance was an overweight exposure to emerging markets, which underperformed their developed counterparts over the period. This included ex-benchmark exposures to China’s TAL Education Group and South Korea’s Samsung Electronics. Stock selection in the US also weighed on returns; notably an underweight to NVIDIA Corp. and an overweight to Micron Technology. Other notable positions to impact returns were an underweight to Apple and an overweight to Uber. Performance was further impacted by our active positioning strategy (APS). Our APS was positioned in favour of value and quality to complement our strategic factor positioning. Value underperformed growth over the period, though this was partly offset by our quality exposure.
In contrast, the Fund benefited from positive stock selection in Asia Pacific ex Japan, including overweights to Australia’s Goodman Group and Hong Kong’s CK Asset Holdings. Stock selection within the communication services space was also positive for the quarter, including a short position in Japan’s Softbank Group and an overweight to Google parent, Alphabet. Other notable holdings to add value were overweights to US ratings agency Moody’s Corp., Finland’s Nokia Oyj and Swiss healthcare giant Roche Holdings.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Shares_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-6.pdfMay, 2021
The Russell Investments International Shares Fund (AUD hedged) outperformed the benchmark in May.
Stock selection in the US accounted for much of the Fund’s outperformance; notably underweights to large growth names like Apple, Tesla and Amazon.com. Stock selection in Japan was also positive, including an overweight to Isuzu Motors and an underweight to Softbank Group. At the sector level, an overweight to financials contributed the most to performance; notably overweights to US heavyweight Citigroup and French names BNP Paribas and Société Générale.
All three stocks posted strong gains for the month. Meanwhile, the Fund’s active positioning strategy outperformed in May. The strategy is currently positioned in favour of value and quality to complement our strategic factor positioning. Both value and quality outperformed growth over the period. In contrast, an overweight to emerging markets detracted from overall returns; notably ex-benchmark holdings in Taiwan Semiconductor Manufacturing Co. and China’s TAL Education Group. Stock selection in the UK also weighed on performance, including an underweight to AstraZeneca. Returns were further impacted by poor stock selection within industrials, including an overweight to Uber Technologies.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Shares_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-5.pdfApril, 2021
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_Global_Opportunities_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-2.pdfFebruary, 2021
The Russell Investments International Shares Fund (AUD hedged) outperformed the benchmark in February. Contributing to the Fund’s outperformance were strong gains from value managers Sanders and Wellington as investors continued to rotate out of growth-oriented names in favour of more cyclical and cheaper value stocks. More broadly, the Fund benefited from strong stock selection in Continental Europe; notably overweights to financials such as the Netherlands’ ING Groep NV and France’s BNP Paribas SA. Stock selection in Japan and the US also added value; the latter including underweights to Apple and Tesla. Other notable positions to add value in February were overweights to Germany’s Daimler AG and Norway’s Norsk Hydro ASA. Meanwhile, the Fund’s active positioning strategy outperformed in February.
The strategy is currently positioned in favour of value and quality to complement our strategic factor positioning. Value performed well over the period; though this was partly offset by our quality exposure. In contrast, stock selection amongst consumer staples detracted from overall performance, albeit modestly. This included overweights to PepsiCo and the UK’s Unilever. In terms of overall positioning, we increased the Fund’s overweights to Japan and emerging markets as well as our underweights to North America and Asia Pacific ex Japan during the month. We also reduced the Fund’s overweight to Continental Europe and our underweight to the UK.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Shares_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD.pdfasset_class:
asset_category:
peer_benchmark:
broad_market_index:
manager_contact_details: Array
ticker: RIM0009AU
release_schedule: Monthly
structure: Managed Fund
commentary_block: Array
factsheet_url:
Fund Factsheet
fund_features:
Russell International Shares Hedged A aims to provide a total return, before costs and tax, higher than the Fund’s benchmark over the long term by providing exposure to a diversified portfolio of predominantly international shares largely hedged into Australian dollars.
- The Fund invests predominantly in a broad range of international shares listed on stock exchanges in developed international markets.
- The Fund may also be exposed to emerging market shares.
- Derivatives may be used to obtain or reduce exposure to securities and markets, to implement investment strategies and to manage risk.
- Foreign currency exposures are largely hedged back to Australian dollars.